Management - Strategic Development Within An Organisation - Assessment Answer

December 17, 2018
Author : Ashley Simons

Solution Code: 1ACDA

Question:Management

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Management Assignment

Assignment Task

Briefly trace the development and growth of the organisation from its beginnings to the present through the application of corporate strategies –what types of strategies have these been?

There have been many criticisms of the business practices that company has pursued over the years. Describe TWO of these practices and outline the outcomes.?

Perform an environmental analysis for the involvement of the organisation in the context of the industry(ies) it operates in – what are the main opportunities & threats?

Describe the organisational culture or leadership style within the organisation.?

Research what strategies has been applied, and how? Why?

There have been many criticisms of the business practices that company has pursued in recent years. Describe TWO of these controversies and outline the outcomes?

Perform an environmental analysis for the involvement of the organisation in the context of the industry(ies) it operates in – what are the main opportunities & threats?

Describe the organisational culture or leadership style within the organisation?

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Solution:

Introduction

With the accelerated growth of the competitive world and hostile business environment, it has become paramount for organizations to promote strategic development to survive and to sustain the competitive culture. The National Bank of Australia is one of the groups that has undergone transition and adapted more flexible and performance promoting business strategies (Pop & Maier, 2012). The bank is one of the oldest and best institutions of its kind in Australia since it has been operational for 150 years. The bank is ranked number 21 in the global scene and serves a total of twelve million customers. When it commenced operations in 1898, it was known as the National Commercial Banking Corporation of Australia Limited and has since rebranded to be the National Bank of Australia. The bank runs operations in almost ten states and is very influential wherever it operates.

Corporate strategies

The bank employs a strategic management approach to carrying out the smooth running of the organization and also to enhance organizational performance. The company has had to make changes through the years to correct losses and also adapt to the dynamic business environment (Pop & Maier, 2012).Among the significant aspects of the strategic management is the formulation of viable goals and objectives for the company since the company was founded. The vision for the company is to earn the substantial respect of its customers and be termed as the safest bank to operate with. This concept is meant to enhance the competitive position by ensuring they attract most of the customers with a promise of security with their money. The Mission of the bank is to differentiate themselves from the rest of the financial service providers so as to appear unique thus attract most of the customers (business wire, 2006). The primary strategy for survival used in the past was globalization whereby the company opened up branches in Asia, US, UK, New Zealand, Singapore, Hong Kong and China. The first foreign investment was made in the UK in 1960 and then in Asia in the 1970s and the other branches subsequently followed, the company engaged in globalization so as to expand and acquire more market enhancing their competitive position (National Australia Bank Limited , 2012).

The use of mergers and take over’s was also another strategy that aimed at neutralizing competition in foreign states. For example, the company acquired the Clydesdale Bank in Scotland and the Northern Bank of Ireland. In 1990 NAB bought the Yorkshire bank in England. The acquisitions were meant to enhance the control of the markets and avoid the negative implications of starting new operations in the countries. In the contemporary world, the bank has invested in technology as a strategy to maintain the trust of customers (National Australia Bank Limited , 2012). Through technology systems like the Customer relations management, the bank aims at achieving the three generic strategies postulated by Michael Porter which aim at reducing costs, differentiating products and being unique among its competitors so as to win over most of the customers. The institution also applies the generic strategy of focused services where customers are segmented and targeted according to their needs. According to Sigalas & Economou (2013), the company provides a variety of services which include business to business services, personal banking and product and market services in an attempt to cater for all financial needs that the various customer segments would seek. Through advanced technology and employment of staff with the right skills, the company can perform strategic marketing using modern marketing channels like the internet making it possible for more people to be aware of their services. The bank ensures to create a good public reputation and relationship through the promotion of corporate social responsibility like sponsorship, charity works in the various branches located in the nine states. This strategy creates a positive impression on customers and thus ensures that they stay loyal to the company (Sigalas & Economou, 2013).

Criticisms of the bank

The bank invested heavily in the Customer Relationship Management systems which are a form of modern technology to keep up to date records of transactions. However, the business journals and newsletters reported inefficiency of the systems due to lack of frequent updates which prompted to the collapse of the regime in the year 2010 whereby 60,000 transactions were lost forcing the accounting department to retrieve customer information manually. The company was criticized for not thinking proactively about the welfare of clients (Sigalas & Economou, 2013). In the year 2004, the company was criticized for poor management of systems whereby the company experienced a 360 million loss due to undetected fraudulent activities in the spot market by the foreign exchange desk that took advantage of the mismanaged systems and plotted to generate bonuses from falsified profits. The company was highly criticized in Ireland by the government and other corporate bodies for lacking enough responsibility. This criticism was based on the fact that the firm had scandals over tax evasion. This accusation tainted the image of the enterprise in the country and made the customer trust go down thus reducing the efficiency in Ireland (National Australia Bank Limited , 2012).

Environmental analysis

PESTEL analysis

Since the company operates internationally, it is prone to political issues such as operation authorization, development, project portfolio and other success drivers. The company had resistance from the government of Ireland due to allegations of tax evasion and mismanaged funds. It also invests in infrastructure and corporate social responsibility in different countries and host policies may differ, for this reason, the company closes up some mergers situated in India and UK. Increased costs of energy, operations and labor are economic issues that affect the smooth running of the business. Socio-cultural factors arise because the workforce is diversified and people may differ in culture, values and beliefs. The values and beliefs make up the organization culture at the company and may hinder interactions (Pop & Maier, 2012).

Swot Analysis

The NAB Company is a financial institution in Australia and other countries that aim at gaining favour among customers who seek financial help; the clients can be big investors or enterprises. Among the strengths of the company are the right brand image and financial position which enhances the going concern and since it is a commercial business, customers will always choose one with a future. The company is termed as the safest bank in Australia. The company is also able to make adequate revenue and manages their expenses. It is the largest asset holder which also enhances the security due to going concern concept. It has a diversity of products and services that cater to a lot of customer segments and also has excellent customer services (Pop & Maier, 2012).

The company is weakened by the fact that it has no global acclaim, and its rate of globalization has gone down rapidly due to the reducing profit margin.

The company has an opportunity of continuing its globalization and commencing operations in other countries and also acquire more assets and resources in the process enhancing its competitive position and going concern. The company can also engage in more joint ventures to neutralize competition and gain more knowledge and resources.

The company faces threats of heightened competition from companies like BNP Paribas, Bank of America, HSBC, Standard Chartered Bank among other foreign banks which also offer attractive services to customers and may pose a threat to the client base of the NAB. The company will also face threats of protective governments who will increase the number of legislations and who may create an unfavourable political environment (Pop & Maier, 2012).

Particular and internal environment analysis

The company has a code of ethics that guide workers in the workplace to ensure that they are properly conducted. The workers receive constant training on the change and developments in the company and also on how to deal with customers. For further motivation there is proper remuneration and also communication is adequate. The internal control is monitored by the management, and a chain of command exists to ensure appropriate coordination of units (Moran, Palmer & Borstorff, 2007).

The company is in the public industry of financial services and serves over 20million customers. There is a lot of competition from local and international businesses that tend to threaten the company’s customer base. However to neutralize this effect the company ensures that there is strategic planning that brings rise to mergers and acquisitions and technological advancements. An example is where the business bought the Yorkshire bank in England. The company has environmental management standards which define the relations between the enterprise and the external environment including how the company can mitigate risks, relate with customers and suppliers and also the framework for corporate social responsibility (Moran, Palmer & Borstorff, 2007).

Organizational Culture

The core values of the company are based upon customer focus, excellent working environment, and environmental sustainability which allow the company to grow. The company believes in motivating their workers to maximize their productivity; management ensures that the employees adhere to professional code of ethics. The company is also actively involved in environmental sustainability and social involvement by volunteering and sponsorship of social groups like sports clubs and charity cases (O'Shannassy, 2008). Over the years there have been very many CEO who practiced transformational leadership to bring change to the company and neutralize weaknesses and threats. Some of the transformational leaders include CEO Frank Cicutto who served from the year 1999 to 2004 whereby the company experienced continuous and stable growth. Another CEO was Cameron Clyne who entered office in 2009 and served the company well (National Australia Bank Limited , 2012).

With the accelerated growth of the competitive world and hostile business environment, it has become paramount for organizations to promote strategic development to survive and to sustain the competitive culture. The National Bank of Australia is one of the groups that has undergone transition and adapted more flexible and performance promoting business strategies (Moran, Palmer & Borstorff, 2007). The bank is one of the oldest and best institutions of its kind in Australia since it has been operational for 150 years. The bank is ranked number 21 in the global scene and serves a total of twelve million customers. When it commenced operations in 1898, it was known as the National Commercial Banking Corporation of Australia Limited and has since rebranded to be the National Bank of Australia. The bank runs operations in almost ten states and is very influential wherever it operates.

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